EUR analysis 10.02.2020

The euro currency fluctuated in a narrow range slanting toward a decline during the Asian session to witness its rebound from the lowest since October 8 against the dollar on the cusp of developments and economic data expected on Monday by the economies of the euro area and on the cusp of the recent members of the Federal Open Market Committee From Fed Vice Governor Michael Bowman in Florida and Philadelphia Fed President Patrick Harker at the University of Delaware, amid the scarcity of economic data earlier this week by the US economy.

At exactly 05:42 am GMT, the euro pair rose against the US dollar by 0.04% to 1.0955 levels compared to the opening levels at 1.0951, after the pair achieved its highest level during the trading session at 1.0958, while achieving the lowest in four months at 1.0943, Note that the pair started the session on an upward price gap after it concluded the trading last week at 1.0946.

The markets are currently looking by Italy, the third largest economy in the eurozone, to reveal industrial sector data with the release of the December industrial production index for December, before we witness the eurozone economies as a whole. The release of the Sentix index of consumer confidence, which shows a shrinkage of breadth to what Its value was 6.1 compared to 7.6 in the previous reading last January.

On the other hand, investors are currently awaiting what will come out of the FOMC talk, with Federal Reserve Deputy Governor Michael Bowman later in the day delivering a speech titled "Empowering Community Banks" at the American Bankers Association for Community Banks in Florida, before To see Philadelphia Fed President Patrick Harker speak about the economic outlook at the University of Delaware.

This comes hours before the launch of the activities of the semi-annual testimony of the Federal Reserve Governor Jerome Powell before the US Congress, where it is expected that Powell will deliver tomorrow, Tuesday, the first half of his half-year testimony about monetary policy before the Financial Services Committee in the House of Representatives, before he makes the day after tomorrow In the second half of his semi-annual testimony about monetary policy before the Senate Banking Committee.

Technical analysis

The EURUSD pair continues to move within the descending channel as more bearish tendency appears to gradually creep towards the next target that reaches 1.0860, to keep the downtrend scenario effective for the coming period, supported by the negative pressure that SMA 50 constitutes, noting that the breach of the mentioned level It will pressure the price to achieve further decline in the short and medium term.

On the other hand, we point out that a breach of 1.1010 might push the price for intraday gains and test 1.1110 areas before any new attempt to decline.

The expected trading range for today is between 1.0860 support and 1.1010 resistance.

Expected trend for today: bearish.